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City Beat | Will Hong Kong developers who stock up on empty flats push the government into a vacancy tax?
Delicate balance must be struck as officials seek to address public outcry over housing crisis while upholding city’s simple taxation system
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It’s common sense that when a government turns to taxation for problem-solving, it becomes a double-edged sword that can save or kill you.
One of the beauties of Hong Kong’s set-up, under the “one country, two systems” formula, is that it practises an independent taxation policy, which is well-known for being simple but must take reference of “the low tax policy previously pursued”, according to the Basic Law, the city’s mini-constitution.
So what does this mean?
Again, it’s double-edged: on the one hand, the government has the flexibility to impose or abolish any type of tax, duty or rates; on the other, it also has to meet public expectations for the city’s simple and relatively low taxation system to be maintained.
Of course, how low is “low”, and how simple is “simple” can always be debatable, and the latest situation is worth reflecting upon.
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